[ARFC] - Chaos Labs Risk Stewards - Increase Supply and Borrow Caps on V3 Metis, Arbitrum - 10.03.2023

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TL;DR:

The discussion focused on ChaosLabs' proposal to increase supply and borrow caps for certain assets on Arbitrum and Metis platforms, excluding WETH and m.DAI due to liquidity concerns. The proposal, supported by Gauntlet and set to be executed via the Risk Steward process, aims to monitor liquidity continuously.

The discussion primarily revolved around the proposal by ChaosLabs to increase the supply and borrow caps for several assets on the Arbitrum and Metis platforms. This was based on their methodologies and an analysis of user positions for each asset. On Arbitrum, they suggested increasing the supply cap for rETH and LINK due to their high utilization rates. On Metis, they recommended doubling both supply and borrow caps for m.USDC and m.USDT, and increasing the supply cap for METIS. However, they advised against increasing the caps for WETH and m.DAI due to limited on-chain liquidity and overrepresentation in the total circulating supply, respectively.

Gauntlet supported these recommendations and further suggested increasing WETH supply caps on METIS, citing strong liquidity in Metis-USDC/USDT pools. ChaosLabs has prepared the payload for the proposal to be executed via the Risk Steward process, but did not provide further details. They reiterated their stance on not increasing the WETH supply cap at this time, despite improvements in DEX liquidity, and expressed their intention to continue monitoring the liquidity.

In conclusion, the discussion led to a consensus on increasing the supply and borrow caps for several assets on the Arbitrum and Metis platforms, with the exception of WETH and m.DAI. The proposal is set to be executed via the Risk Steward process, with continuous monitoring of the liquidity situation. The updates, as mentioned by Gauntlet, have been executed via risk steward4.

Posted 2 months ago

Last reply 2 months ago

Summary updated 2 months ago

Last updated 06/12 00:43